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Today, Representative Rick Hansen called for more aggressive collection of tax revenues by the Department of Revenue after a Legislative Auditor's report revealed that Minnesota could be missing out on more than $1 billion a year in income and sales tax payments.
"It is no secret that our state's budget is tight," said Hansen. "It only makes sense to look at ways to make government and its taxpayers more accountable. The Department of Revenue has made strides in catching tax cheaters, now it needs to be more effective in targeting those who pay less than their share."
Last year, as a member of the Legislative Audit Commission, Representative Hansen moved the motion that the Legislative Auditor conduct this audit report. Specific recommendations of the report include improving tools to identify non-compliant taxpayers, simplifying debt collection pursuit methods and improving the quality of assistance offered to taxpayers who call the department with compliance questions.
While the state tax agency has upped its spending on enforcement in recent years, Rep. Hansen stated that better methods are needed to target audits more accurately. "Let's be clear – this is just a part of making sure our state is using it's resources effectively. Any talk about taxes needs to be accompanied by the assurance that the state is doing everything it can to collect taxes already in law. Our citizens deserve no less."